Blog

Blog

We are pleased that media in both Alaska and around the country are reporting on the impact COVID-19 is having on the nonprofit sector and the many organizations that continue as best they can to serve their communities. On this page, we will share the reports of how we and our partner the National Council of Nonprofits are working to ensure that the sector is part of both state and federal relief programs. And we’ll share with you some stories of ways that Foraker Partners and other Alaska nonprofits are managing the crisis.

Many team up on new “AK Can Do” Fund — Anchorage Press, April 9, 2020. A new statewide fund connects donors in every Alaska community with families and organizations facing dire economic hardships from the coronavirus pandemic.

COVID-19 puts Alaska nonprofits at risk — March 27, 2020. Press release reporting on a Foraker survey conducted March 16-24. Over 450 organizations from every segment of the nonprofit community and every part of the state confirmed that their ability to deliver services is deeply impacted as a result of the pandemic.

The State of Alaska is opening up applications for a $290 million small-business and nonprofit grant program.

The Alaska Department of Commerce, Community, and Economic Development (DCCED) and the Alaska Industrial Development and Export Authority (AIDEA) are partnering with the lender Credit Union 1 (CU1) to support small business and nonprofits impacted by the COVID-19 pandemic, through the AK CARES Funding Program.

The application to apply for AK CARES will be provided on the CU1 website. The application period is currently scheduled to begin on June 1, 2020, and funds will be awarded first-come, first-serve. We encourage you to prepare your documentation now (a list of items is provided in the FAQs here).

Foraker President/CEO Laurie Wolf called on the Senate Finance Committee to move critical CARES Act funds to Alaska’s nonprofits and small businesses as fast as possible. “We need it today so we can be here tomorrow,” she said. Read her full testimony here.

Did you receive a PPP loan for less than $2 million? The SBA announced today: “Any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.” You can learn more here. (question #46).

What does that mean for you as a borrower? The SBA will accept the good faith certification on your PPP application certifying the loan was necessary. The SBA will not be asking you to submit additional documentation to demonstrate need. You will still need to meet the other guidelines of the PPP program.

As of today, the SBA has not released further guidance on forgiveness. They are working on the guidance, and we will let you know once it is released

Earlier this week, the Legislative Budget and Audit Committee of the Alaska Legislature approved Governor Dunleavy’s plan to spend federal coronavirus aid from the CARES act. Through our collective advocacy efforts with many of our partners, we were successful in ensuring that nonprofits are included in multiple funding streams and that we are seen as a key component of our state’s economy. While it is not clear yet exactly what the guidelines for distribution will be, know that we are working to ensure that the intent remains strong to include nonprofits in these programs.

The following is a partial list of the allocation (pending litigation) of $1.25 billion of Alaska CARES funding. Nonprofit leaders should watch each of these avenues as their missions dictate and apply or be ready to receive the funding when the guidelines are available.

$10 million to the Department of Revenue for the Homeless Assistance Program, which is administered by the Alaska Housing Finance Corporation

$52M to Dept. of Transportation for airports, and highways projects

$258 million to the Department of Commerce, Community, & Economic Development (DCCED) for community assistance

$290 million to DCCED for small business relief, including for nonprofits

$311 million to DCCED for distribution to communities for covering direct costs

$100M to DCCED for fisheries relief

Other funds approved by the committee include $50 million dedicated to nonprofits at the frontline of responding to COVID-19. These grants will flow through the Department of Health and Social Services, although the actual mechanism for distribution has not yet been determined.